Manganese: Twin Brother or Ugly Stepchild of the Rare Earth Metal Family?

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"One can see many similarities between the manganese metal market and the rare earth metal market. Both share significant supply constraints."

Twins
MetalMiner, Lisa Reisman

One can see many similarities between the manganese metal market and the rare earth metal market.

For example, both categories (manganese and rare earth metals, or any individual metal that comprises the rare earth metal complex) share significant supply constraints, forcing sourcing managers to devise supply- and commodity risk management strategies. Both manganese and rare earth metals come primarily from China. Both have seen price drops as a result of public policies that limit exports (quotas).

Finally, the solution to wean U.S. business off its nearly sole dependency on China for many metals involves a mix of several elements, as we have previously written, including:

  • Enactment of U.S. legislation and coordination among government agencies elevating the status of the 43 minerals listed in a recent ARPN report, requiring the development of complete supply chain risk management strategies for each and every mineral;
  • Streamlining the U.S. mining permitting process, currently the longest in the world;
  • The establishment of public-private partnerships in which industry works with the DOD and other national security agencies to devise strategies and tactics to secure supply of key materials, and
  • Strict enforcement of rules-based trade, among several others.

How Much of a Critical Shortage?

Larry Reaugh, CEO of American Manganese Inc. (AMY:TSX.V; AMYZ:OTCPK; 2AM:FSE), a junior mining firm that recently filed a preliminary feasibility report for its Artillery Project in Arizona emphatically explained to MetalMiner that no shortage of ore exists; rather, "there is a shortage of grades because you’re shipping a lot of gangue (worthless material) off to a smelter or to a ferroalloy plant, mostly in China. With grades declining, you have to enrich the material which adds to the cost". . .View Full Article

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